Consultation Paper No. 85 Notice of Proposed Amendment to Legislation
The DFSA is proposing an urgent minor amendment to the Regulatory Law 2004 to be presented to the Ruler for his consideration for enactment. The amendment relates to the definition of a "Privileged Communication" in Schedule 1 of the Regulatory Law 2004. The term "Privileged Communication" is used in Articles 67, 82 and 104 of the Regulatory Law 2004.
The proposal stems from the DFSA's involvement in a UAE working group led by the UAE Ministry of Finance. This group is dealing with the assessment of the UAE by the OECD Global Forum on Transparency and the Exchange of Information for Tax Purposes (OECD Global Forum) against 10 principles under three broad categories:
The assessment of the UAE's legislative requirements commenced in 2011 (Phase 1 review). The OECD Global Forum will also test whether the UAE's legislative requirements enable the effective exchange of tax information (Phase 2 review).
The OECD Global Forum has published its Phase 1 review report on the UAE. The report highlights the following matter which requires action by the DFSA under the laws it administers. The UAE report highlights the issue as follows:
In order to comply with the relevant OECD Global Forum Standards, the DFSA proposes to amend the definition of a Privileged Communication in Schedule 1 of the Regulatory Law 2004 as follows:
"a communication attracting a privilege arising from the provision of professional legal advice and any other privilege applicable at law
advice or from the relationship of lawyer and client or other similar relationship, but does not include a general duty of confidentiality."
The DFSA considers that the proposed amendment is necessary to ensure that the DIFC, and therefore the UAE, complies with the standards set by the OECD Global Forum in the timeframe set by the OECD. The DFSA is providing for public consultation pursuant to Article 7 of Dubai Law No 9. Given the nature of the amendment sought and its urgency, the deadline for providing comments on the proposal is 23rd September 2012.
All comments should be in writing and sent to the email specified below. You may, if relevant, identify the organisation you represent in providing your comments. The DFSA reserves the right to publish, including on its website, any comments you provide, unless you expressly request otherwise at the time of making comments.
Comments to be emailed to:
Consultation Paper No.85
13 September 2012